I'll start this post by saying I don't "need" to upgrade either. I have that upgrade itch and I'm trying to decide which (if either) of these two options would be best.
My current system:
I7-860 2.8GHz - stock speeds
GTX 560 TI
8 GB ram
120gb SSD + 1tb HDD
700W PS
I play at a 1920x1080 resolution.
I primary play WoW, but I also mess around in SWTOR, Rift, LoL, Skyrim, Arkham City/Origins, and a few others. I may also try out Wildstar when it finally comes out. Whenever possible I prefer to play as close to max setting as possible.
What's going to be the bigger upgrade for me overall?
GTX 770 or
I5 3570k or I5 4670k - I will probably leave them at the stock clock for awhile, but OCing is a possibility down the road.
For entirely personal reasons I would prefer to stick with Intel and Nvidia. Would either of these be worthwhile? Would the old Lynnfield bottleneck the GPU too much in the more GPU intensive games? Most of these games would probably benefit more from the GPU, but I imagine WoW would see a bigger improvement from the CPU especially in WoD.